How to Complete Form 433-D: IRS Installment Agreement Guide for Expats

ByRandall Brody FATCA for Expats
How to Complete Form 433-D for Expats

Paying your tax bill in full isn’t always possible. The IRS recognizes that many taxpayers, particularly expatriates managing both foreign and U.S. obligations, may require additional time. That’s why the agency offers installment agreements. The main form used to finalize one of these agreements is IRS Form 433-D.

In this guide, you’ll learn exactly what the form does, why the IRS sends it, who needs it, and how to complete it. We’ll also cover mailing and fax options, online filing tools, and what expats should know when they don’t have a U.S. bank account.

What Is IRS Form 433-D Used For?

The IRS uses this form to set up a direct debit installment agreement. This allows you to make monthly payments automatically from your bank account until your balance is paid off.

In short, Form 433-D is the “contract” that makes your payment plan official. It confirms the amount you’ll pay each month, the account used for withdrawals, and the terms of the agreement.

Who Needs to File The Form?

You’ll need to complete this form if:

  • Your balance is large enough that the IRS requires automatic payments.
  • You prefer the convenience of automatic withdrawals over mailing checks each month.

How To Complete Form 433-D: Step-by-Step Guide

Completing the form is straightforward once you understand what each section requires.

Step 1: Provide Your Personal and Tax Information

You’ll need to include:

  • Full name and address
  • Social Security Number or Employer Identification Number
  • Phone number
  • Type of tax owed (income tax, payroll tax, etc.)
  • Tax periods covered
  • Total amount due

Step 2: Set Up Your Payment Method

Most taxpayers use direct debit. You’ll list your bank name, routing number, and account number. The IRS will automatically withdraw your monthly payment from this account.

If you can’t use direct debit, the IRS may allow you to send payments by check or money order, but this usually requires special approval and is less convenient.

Step 3: Agree to the Terms and Conditions

The agreement spells out what the IRS expects from you:

  • You must file all future tax returns on time.
  • You must pay all future taxes on time.
  • If you default, the IRS can terminate the agreement and resume collections.

Step 4: Sign and Submit the Form

You’ll sign and date the form before sending it to the IRS. This confirms your acceptance of the terms and allows the IRS to begin withdrawals.

Is Direct Debit My Only Choice?

Not always. While the IRS prefers direct debit and may require it for larger balances, some taxpayers can make payments by check, money order, or payroll deduction.

But these options carry risks. Mailed payments can be delayed, and missing deadlines can result in the IRS canceling your agreement. Expats face even greater delays when mailing from abroad, which is why direct debit is strongly encouraged whenever possible.

Where to Send IRS Form 433-D

A common question is: “Where do I send the form?”

The mailing address depends on your situation and the office handling your case. Typically, you’ll send it to the IRS office listed on your notice or the one that approved your installment agreement.

If you’re unsure, call the IRS Automated Collection System (ACS) at 1-800-829-3903.

In some cases, you may also be allowed to fax Form 433-D back to the IRS. The fax number will be included in your IRS correspondence.

Can You File IRS Form 433-D Online?

Another common question: “Can I submit the form online?”

Currently, you cannot complete and submit Form 433-D entirely online. However, the IRS does offer an Online Payment Agreement tool, which lets you apply for a payment plan. Once approved, the IRS may still require you to sign and return Form 433-D by mail or fax.

In short, you can apply online. However, the final step often involves mailing or faxing the form.

How Long Does an IRS Installment Agreement Last?

The length of your agreement depends on your balance and IRS approval. In general:

  • For balances under $50,000, agreements may last up to 72 months.\
  • Larger balances may require shorter terms or additional financial disclosure.

Your Form 433-D outlines the expected duration of your payment plan. If your financial situation changes, you can request a modification from the IRS by calling the number on your notice or submitting a written request. 

In some cases, you may need to provide updated financial information before the IRS adjusts your agreement.

What Happens If You Miss a Payment?

If you miss a payment under your Form 433-D agreement, the IRS may:

  • Send you a notice of default.
  • Add penalties and interest to your balance.
  • Cancel the agreement altogether.

If that happens, the IRS can move quickly to collect through liens, levies, or garnishments. The best approach is to contact the IRS immediately if you can’t make a payment, rather than waiting for them to act.

What Happens to Future Refunds?

While your installment agreement is active, the IRS will apply any future tax refunds to your debt until your balance is fully paid.

For example, if you’re set to receive a $2,000 refund but still owe $15,000, the IRS will keep that refund and reduce your balance to $13,000.

Alternatives If You Can’t Afford 433-D Payments

If the monthly payment under Form 433-D is too high, you may qualify for other options:

Each of these programs has strict requirements and involves detailed financial reviews. A tax professional can help you figure out which one fits your situation best.

IRS Form 433-D for Expats

Expats often encounter difficulties with Form 433-D due to U.S. bank account requirements. The IRS typically won’t accept payments from foreign banks. That means you’ll need a U.S.-based account to set up direct debit.

If you don’t have one, the IRS may allow you to mail checks. However,  this can be risky due to international mailing delays. Another option is to use a trusted tax professional in the U.S. who can help facilitate payments on your behalf.

FAQs About IRS Form 433-D

1. Can I change my installment agreement terms after submitting Form 433-D?

Yes. You can request changes if your financial situation shifts. Contact the IRS promptly to explain your hardship and propose new terms. Staying proactive helps keep your installment agreement intact.

2. How long does it take for the IRS to approve the form?

Typically, the IRS reviews your form within a few weeks to a couple of months, depending on workload and case complexity. You’ll receive an approval or denial notice in the mail. Track your case and stay in touch to avoid surprises.

3. Are there fees associated with setting up an installment agreement using Form 433-D?

Yes, the IRS charges a user fee to set up a direct debit agreement, which can vary based on how you apply and your income level. Low-income taxpayers might qualify for reduced or waived fees. Always double-check the fee amount and ensure it aligns with your budget.

4. What happens if I change my bank account?

If your direct debit bank account changes, you must notify the IRS immediately and submit updated banking details. The IRS will need the new routing and account numbers to maintain uninterrupted payments. Prompt updates help avoid payment failures and potential default.

5. Could the IRS file a lien even if I have an installment agreement in place?

Yes, the IRS can still file a federal tax lien to secure its interest, even if you’re making payments under an installment agreement. For larger debts, this step is common, and the lien stays until your balance is paid off. While the lien doesn’t cancel your agreement, it can affect your credit and property, so it’s best to discuss concerns with the IRS or a tax professional.

6. Do interest and penalties stop once the payment plan is in place?

No. Interest and penalties continue to accrue on your unpaid balance until it’s fully settled. The installment agreement makes the payments manageable, but doesn’t freeze charges. Keeping pace with payments still reduces the future growth of your debt.

Final Thoughts: Should You File Form 433-D on Your Own?

IRS Form 433-D finalizes your direct debit installment agreement with the IRS. A single mistake, like leaving out banking details or missing a signature, can delay approval and expose you to enforced collection. For expats, the lack of a U.S. bank account makes the process even more complicated. That’s why many U.S. taxpayers abroad turn to professional help.

At Tax Samaritan, we specialize in helping American expats stay compliant with their U.S. tax obligations. Our team prepares accurate returns and resolves IRS issues through relief programs, including installment agreements, so you avoid costly mistakes and unnecessary stress.

If you need assistance, click below to request a FREE 30-minute, no-obligation consultation today.

Wrapping It Up

If you’re investing outside the U.S. or considering foreign investments, make sure that you understand the U.S. tax implications. This will help to reduce unnecessary interest and income tax. Remember that the tax rules for U.S. expats are complex and can be confusing. Check with a tax professional to ensure you’re always on top of your tax obligations.

Tax Samaritan aims to provide our clients with the best counsel, advocacy, and personal service. We are not only expat tax preparation and representation experts but strive to become valued business partners. Tax Samaritan understands our clients’ unique needs; every tax situation requires a personal approach to providing realistic and effective solutions.

Do you need help filing your US expat taxes? Schedule a call using the button below.

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Randall Brody

All About Randall Brody

Randall is the Founder of Tax Samaritan, a boutique firm specializing in the preparation of taxes and the resolution of tax problems for Americans living abroad, as well as the other unique tax issues that apply to taxpayers. Here, they help taxpayers save money on their tax returns.